In the vast majority of cases, taking the SEHID is absolutely beneficial and you should definitely claim it. With $14,000 in premiums, that's a substantial deduction that will save you money on both income tax and self-employment tax. The scenarios where it might not be advantageous are extremely rare - things like if you're right at the edge of qualifying for income-based student loan forgiveness programs that require higher AGI, or if you're applying for mortgages where they want to see higher income. But for pure tax purposes, it's almost always a win. One thing to double-check though - make sure you meet all the eligibility requirements. You need to have net self-employment income, and if you're married and your spouse has access to employer health insurance that covers you, that could disqualify you from taking the deduction. The fact that your accountant mentioned it suggests they think you're eligible and it would benefit you. I'd trust their judgment - they can see your full tax picture and calculate the exact impact for your situation.

One additional point to consider that I haven't seen mentioned yet - the timing of when you take the SEHID can matter if you're making estimated quarterly tax payments throughout the year. Since the deduction reduces both your income tax and self-employment tax liability, it can affect how much you should be paying in estimated taxes. If you're planning to take the SEHID, make sure you factor that into your quarterly payment calculations so you don't overpay during the year. I learned this the hard way my first year of self-employment - I was calculating my estimated payments based on my full income without accounting for the SEHID, and ended up giving the government an interest-free loan for months. Also, keep good records of all your health insurance premium payments throughout the year. The IRS may want documentation if they ever audit, so having receipts or bank statements showing the payments is important. With $14,000 in premiums, that's definitely going to be noticed if they review your return.

Has anyone tried using TaxSlayer? Their website says they offer "Ask a Tax Pro" service that sounds similar to what TaxAct used to have. Thinking about switching for next year.

I'm in the exact same boat as you! Been using TaxAct since 2020 and loved having that scheduled appointment where someone would walk through my entire return with me before filing. It was such a relief as someone who's not super confident with taxes. I noticed the change last year too and was really frustrated. What helped me was combining a few approaches: I used the new question system to ask about specific sections I was unsure about, but I also found a local Enrolled Agent who offers "review only" services for about $75. They'll go through your completed return and flag any issues before you file. It's annoying that we have to cobble together solutions now when TaxAct used to offer everything in one package, but at least there are still ways to get that expert review we need. The peace of mind is worth the extra step and cost for me.

Can someone explain this to me like I'm 5? I get around $1400 back every year but I have no idea what all this 4(b) and 4(c) stuff means. Where on the actual form do I put stuff to get more money in my check? My HR department is useless and just gave me the form with no explanation.

I had the exact same problem and finally got it sorted out! Here's what worked for me after years of getting $800-1000 refunds: The key is understanding that you want to increase your "take-home" pay by reducing withholding, and the easiest way is through Step 4(b) "Deductions" on your W-4. Here's the simple math: Take your typical refund amount and multiply by 4. So if you usually get $1000 back, put $4000 in Step 4(b). This tells your payroll system to withhold less tax because it thinks you have more deductions. I put $3200 in Step 4(b) last year (I was getting about $800 refunds) and my bi-weekly paycheck went up by roughly $62. Got my refund down to just $150 this year, which is pretty much perfect. Just make sure you don't go overboard - you want to get close to zero refund without owing money. Start conservative and you can always adjust it again next year if needed!

As someone who's been preparing taxes for several years, I'd strongly recommend avoiding the refund transfer route. The complications far outweigh the benefits - you're dealing with third-party processors, additional fees for your client, potential delays, and as others mentioned, the risk of offsets completely derailing payment. I've found the most successful approach is requesting payment upfront for basic preparation work (maybe 50%) and the remainder upon completion but before e-filing. This protects both parties - you get compensated for your time, and they get to review everything before final payment. Most clients understand this is standard business practice, just like any other professional service. The peace of mind is worth way more than the perceived convenience of deducting from their refund!

I've been doing taxes for my neighbors for the past 3 years and learned this lesson the hard way! My first year, I tried the refund transfer route thinking it would be "easier" for everyone. What a nightmare! Between the extra fees, delayed processing, and one client whose refund got intercepted for an old tax debt (leaving me unpaid), I quickly realized it's not worth it. Now I just ask for payment when I hand over their completed return - before I hit submit on the e-file. Most people are totally fine with this since they can see exactly what their refund will be. I use a simple invoice app on my phone and accept Venmo, Zelle, or cash. Way cleaner, no third parties involved, and I sleep better at night knowing I'll actually get paid for my work! Sometimes the old-fashioned way really is the best way.

The Additional Medicare Tax at $200k is definitely a curveball that catches a lot of people off guard. I went through this exact situation two years ago when my income jumped from $185k to $230k due to a promotion and larger bonus structure. Here's what I learned the hard way: the key is to treat your base salary and bonus as separate withholding calculations. For your regular paychecks, you can use the IRS withholding calculator to determine the right additional amount for line 4(c) of your W-4. I ended up adding $312 per biweekly paycheck to cover the additional tax burden. For the bonus component, since it's taxed as supplemental income at the flat 22% rate (plus the 0.9% Additional Medicare Tax on amounts over $200k), you need to calculate if that withholding will be sufficient. In most cases with a 25% bonus component, you'll need additional withholding from your regular paychecks to cover the shortfall. One strategy that worked well for me was to calculate my total expected tax liability in January, subtract all expected withholding (including the flat rates on bonuses), then divide the difference by my remaining pay periods. This gave me a specific dollar amount to add to each regular paycheck. Also consider maxing out your 401(k) early in the year if possible - this reduces your taxable income during regular pay periods and gives you more take-home pay when you need it most, before the bonus hits.

I'm dealing with a very similar situation and wanted to share what's been working for me so far. I crossed $200k for the first time this year (base salary $165k plus quarterly bonuses that will likely total around $50k). What I found helpful was using the IRS withholding estimator quarterly rather than just once at the beginning of the year. Since your bonus amount can vary, I recalculate my withholding needs after each quarter based on actual YTD income and update my W-4 accordingly. For the Additional Medicare Tax specifically, I learned that your employer will automatically start withholding the extra 0.9% once your YTD wages exceed $200k, but they don't look at your projected annual income. So if you get a large bonus early in the year that pushes you over $200k, you might have too much Additional Medicare Tax withheld if your total annual income ends up being closer to the threshold. I've been setting aside 30% of each bonus payment in a separate account, then making estimated tax payments quarterly based on where my projections stand. This gives me more control than trying to perfectly calibrate payroll withholding, especially with the variable bonus component. One thing I wish someone had told me earlier: the $200k threshold is per person, not household. So if you're married filing jointly, each spouse gets their own $200k threshold for the Additional Medicare Tax (though it's $250k combined for other purposes).